“Only when the water is gone will refineries be able to estimate how much damage they have – presently, it’s very difficult,” Ehsan Ul-Haq, director for crude oil and refined products, Resource Economist Ltd, told CBSNews. “If the damage is not too much, then probably it’s a matter of weeks; if they’re impacted significantly, it might take three months” for the refineries to get back up to full speed.
Related: Gasoline ETF Jumps as Harvey Hits Refineries
According to S&P Global Platts, over one-fifth of U.S. refining capacity has been shut down since Harvey made landfall.
Matthew Peterson, chief wealth strategist for LPL Financial, pointed out that refiners’ inability to produce and distribute refined goods like gasoline has diminished supplies, which in turn has driven up prices. Richard Joswick, an analyst with S&P Global Platts, expects this to be a short-term shock and gasoline prices to only be elevated for one- or two-weeks.
For more information on the energy market, visit our energy category.